Margenrechner
The detailed guide below is currently available in English.
Margin vs. markup
These two terms get mixed up constantly. Margin is profit divided by the selling price — a $100 sale that cost $60 has a 40% margin. Markup is profit divided by cost — the same sale is a 66.7% markup. Pricing a product by "marking up" cost and pricing by "target margin" therefore give different numbers unless you convert between them.
Using a target margin
To price for a desired margin, divide cost by (1 − margin): cost $60 with a 40% target needs a price of 60 ÷ 0.6 = $100. Higher targets push prices up faster than intuition suggests — an 80% margin requires five times the cost, because only 20 cents of each sales dollar remains for the item itself.
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Why is markup always bigger than margin?
Markup divides by the smaller cost figure while margin divides by the larger price figure, so for any profitable sale the markup percentage exceeds the margin percentage.
What margin is healthy?
It depends entirely on the industry: grocery margins are thin while software margins run high. Compare against your own overhead — gross margin must cover fixed costs before the business profits.